North Carolina Sports Betting Stalls in House, Momentum Still Rolling
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Sports betting could be on its way to North Carolina in the near future with recent positive legislative momentum. With a population of over 10 million people, North Carolina is one of the most populated states in the country. Once sports betting launches in the state, sportsbooks will race to get involved in what should be a fast-growing market. Legislators are hopeful that the stage can be set for sports betting to launch in the coming months.
Current Legislation for Sports Betting
Senate Bill 688, first introduced in April by Senator Jim Perry and Senator Paul Lowe, is the current piece of legislation with the most momentum regarding sports betting. SB688 passed in the Senate by a 26-21 vote on August 19. Now, SB688 is stuck in the House of Representatives. The House Committee on Commerce is currently reviewing legislation after it was referred from the House Committee on Rules, Calendar, and Operations on September 15. The assignment to a House committee path is an excellent sign that sports betting is well on its way to North Carolina.
Senate Bill 688 Terms
The current legislation under review, SB688, lays the foundation for sports betting to launch in North Carolina. SB688 permits up to a dozen sports betting licenses with venues that host professional sports given initial priority. That means the Carolina Panthers, Hurricanes, and Hornets could see sportsbooks launch at their respective stadiums soon. Licensees would be allowed to set up kiosks on-site in addition to statewide mobile betting. Venues would be permitted to partner with reputable sports betting brands such as DraftKings and FanDuel.
Successes of Other States
After the United States Supreme Court overturned the Professional and Amateur Sports Participation Act in 2018, states have made a mad dash to launch their sports betting markets. North Carolina’s neighbors in Virginia, West Virginia, and Tennessee have all launched legal sports betting. With these neighboring states having great financial success, there is pressure on North Carolina to introduce sports betting and generate additional tax revenue in the state.
In August 2021, West Virginia collected $1.9 million in revenue with $169,438 in tax revenue, and Tennessee collected $13.2 million in total revenue with $2 million in tax revenue. Virginia’s August numbers have not been reported yet, but in July 2021, the state brought in $19.9 million in revenue, translating to $1.8 million in total taxes. North Carolina’s potential tax revenue is very significant, with a more substantial population than all of those other states.
North Carolina Sports Betting Implications
SB688 also lays out an 8% tax rate. Half of the tax revenue would go into a fund created by legislators to promote tourism and events in the state, while the other half would go into the general fund in the state. Sports betting would create an anticipated $24 million in annual tax revenue to be used for various projects. This potential for tax revenue is the primary driving force for legislators and voters in accepting sports betting.
While the House of Representatives still needs to approve sports betting, once it does, the Governor’s stamp of approval will be the final step required before the legislation moves to the federal level.
